Are you writing an energy drink business plan? If YES, here is a sample energy drink production financial projection, sales cost, profit & loss statement. Starting the energy drink business is not as easy as it might look, because we will need to develop a unique flavor, try out a small batch before producing a mass batch for sale.
Table of Content
Startup Expenditure (Budget)
Most times the capital generated is usually put into overheads and major operating expenses such as can or bottle design and production, utility bill payment, employees’ salaries, equipment and truck delivery. The major areas we would need to focus our start-up capital on are;
- The total fee for business incorporation – $800
- Obtaining of licenses, permits, software and other legalities – $2,000
- Cost of hiring business researchers and consultants – $20,000
- Insurance coverage (general liability, property insurance and workers’ compensation) – $5,000
- Operational cost for the first 6 months (bills payments, employees salaries) – $130,000
- Cost of start-up inventory (raw materials and packaging materials) – $20,000
- Drink formula development and testing – $15,000
- Marketing expenses (promotion of grand opening night and general marketing) – $10,000
- Other start-up expenses such as phone, computer, furniture, printer and stationery – $5,000
- Cost of energy drink making equipment and installation – $150,000
- Cost of store equipment (racks, bin, shelves, store register) – $5,000
- Cost of purchasing an energy drink delivery van – $40,000
- Cost of launching a website – $1,000
- Cost of the opening party – $5,000
- Miscellaneous – $10,000
TOTAL EXPENSES: $418,800
From the above listed items, we would need an estimate of $450,000 in order to successfully set up our energy drinks production company in Pittsburgh – California. The capital looks huge because we would be paying our employees for 6 months and utilities as well.
Generating Funding / Startup Capital for Zuzu Lite Energy Drink Production Business
Zuzu Lite Energy Drinks LLC is a business that was founded and is operated by two business partners Mr. Chu Zing and Mr. Taylor Wang. These two partners intend to run the business without much interference from investors and so have decided to limit the sourcing off their start-up capital to these sources.
The sources where we intend to get our start-up capital from are;
- Sale of personal properties by the two owners to generate part capital
- Applying for loan from the bank
- Approaching wealthy friends for loans
N.B: We were able to generate the sum of $100,000 from the sale of our personal properties. We also got the sum of $50,000 from our wealthy friends. We sought for a loan of $300,000 for the bank, and after submitting several documents, we have just been informed by our banker that our loan has been approved and that our account would be credited as soon as all the modalities have been handled from their end.
Sources of Income
Zuzu Lite Energy Drinks LLC is a company that has been established with the means of making profit in the beverage industry. However, we are not only established to make profit but to also increase our revenue base as well by engaging in other revenue making services or products legally in the United States of America.
Zuzu Lite Energy Drinks LLC therefore intends to generate incomes by selling the below listed products and services;
- Different flavor and brand of energy drinks
- Other beverage drinks
- Consultancy Services
- Business Partnerships
The energy drink industry might not have as much demand as it did three years ago but it is still an industry that hasn’t reached the point of saturation yet as demand for energy drinks are relatively stable. Due to our strategic positioning in Pittsburgh – California, we are optimistic of achieving our set revenue generating target in at least a year of operations that will sustain and help grow our business.
Our optimism were not based on fiction but on facts that were generated from critical analysis and evaluation conducted by our proficient and reputable business consultant, who analyzed the beverage and energy drinks industry in and around our location in California as well as the whole of the United States of America.
The sales projections for Zuzu Lite Energy Drinks were however made on the assumptions that several factors for our company would remain the same for the period of analysis.
- First Fiscal Year-: $600,000
- Second Fiscal Year-: $1,200,000
- Third Fiscal Year-: $2,400,000
Redline Energy Drink
A can of redline energy drink will cost $3.50
- Selling 10,000 cans will cost $35,000
A pack (12 cans) of redline energy drink will cost $40
- Selling 2,000 packs, it will cost $80,000
A can of spike energy shoot will cost $6
- Selling 10,000 cans will cost $60,000
A pack (12 cans) of spike energy shoot will cost $68
- Selling 2,000 packs, it will cost $136,000
Cocaine Energy Drink
A can of cocaine energy drink will cost $6
- Selling 10,000 cans, it will cost $60,000
A pack (6cans) of cocaine energy drink will cost $33
- Selling 2,000 packs, it will cost $66,000
Pussy Natural Energy Drink
A can of pussy natural energy drink will cost $4
- Selling 10,000 cans, it will cost $40,000
A pack (6cans) of pussy natural energy drink will cost $20
- Selling 1,500 packs, it will cost $30,000
Monster Energy Drink
A can of monster energy drink will cost $4.50
- Selling 10,000 cans, it will cost $45,000
A pack (6cans) of monster energy drink will cost $24
- Selling 2,000 packs, it will cost $48,000
ON-GOING OPERATIONAL EXPENSES:
- Operational cost for the remaining 6 months (bills payments, employees salaries) – $150,000
- Equipment rental, repairs and maintenance – $5,000
- Office supplies (stationaries et al) – $1,000
- Restock (raw materials, bottles and packaging materials et al)- $20,000
- Credit card processing fees – $1,000
- Other miscellaneous expenses – $3,000
N.B: It should be noted that the above sales projection were based on the fact that there won’t be an economic crises or melt down; we won’t have a competitor in same location and that our location and other strategies in revenue generation would remain the same. Should there be any change positively or negatively in the above factors, it might affect our sales projection, making it lower or higher.